FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III

Semiannual Agenda of Regulations

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Semiannual regulatory agenda.

SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby publishing items for the Spring 2015 Unified Agenda of Federal Regulatory and Deregulatory Actions. The agenda contains information about FDIC's current and projected rulemakings, existing regulations under review, and completed rulemakings.

FOR FURTHER INFORMATION CONTACT: Robert E. Feldman, Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an agenda of regulations to inform the public of its regulatory actions and to enhance public participation in the rulemaking process. Publication of the agenda is in accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations under the general rulemaking authority prescribed in section 9 of the Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific authority granted by the Act and other statutes.

Proposed Rule Stage:

Removal of Transferred OTS Regulations Regarding Lending and Investment, and Amendments to Part 365 of FDIC's Rules and Regulations (3064-AE22)

In this notice of proposed rulemaking, the Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove from the Code of Federal Regulations 12 CFR part 390, subpart P, entitled Lending and Investment (part 390, subpart P). This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of part 390, subpart P, all insured depository institutions for which the FDIC is the appropriate Federal banking agency will follow the safety and soundness standards contained in 12 CFR part 364 of the FDIC's Rules and Regulations and the real estate lending standards found in 12 CFR part 365 of the FDIC's Rules.

Transferred OTS Regulations Regarding Fiduciary Powers of State Savings Associations (3064-AE23)

The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove from the Code of Federal Regulations 12 CFR part 390 subpart J, entitled Fiduciary Powers of State Savings Associations and all references thereto, and amend certain sections of 12 CFR parts 333 and 303 regarding consent to exercise trust powers to reflect their applicability to State savings associations. Part 390 subpart J was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of part 390 subpart J from the FDIC rules and regulations and adopting of the amendment to parts 333 and 303 proposed herein, all State nonmember banks and State savings associations (collectively FDIC-supervised institutions) seeking consent to exercise trust powers not previously granted by its chartering authority will be required to comply with FDIC rules governing applications for consent to exercise trust powers.

Final Rule Stage:

Incentive-Based Compensation Arrangements (3064-AD86)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the U.S. Securities Exchange Commission, and the Fair Housing Finance Agency are adopting a rule to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule would require the reporting of incentive-based compensation arrangements by a covered financial institution and prohibit incentive-based compensation arrangements at a covered financial institution that provide excessive compensation or that could expose the institution to inappropriate risks that could lead to material financial loss.

Minimum Requirements for Appraisal Management Companies (3064-AE10)

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Association, and the Federal Housing Finance Agency (collectively the Agencies) will be adopting a rule to implement the minimum requirements in section 1473 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to be applied by States in the registration and supervision of appraisal management companies (AMCs). The rule also implements the requirement in section 1473 of the

Dodd-Frank Act for States to report to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council the information required by the Appraisal Subcommittee to administer the new national registry of appraisal management companies. In conjunction with this implementation of section 1473, the FDIC is proposing to integrate its appraisal regulations for State nonmember banks and State savings associations.

Transferred OTS Regulations Regarding Electronic Operations (3064-AE19)

The Federal Deposit Insurance Corporation (FDIC) is rescinding and removing the regulations regarding electronic operations which were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. There is no corresponding FDIC Electronic Operations rule and the rule is deemed obsolete and unnecessary. Therefore, the FDIC is rescinding and removing the regulations.

Transferred OTS Regulations and FDIC Regulations Regarding Management Official Interlocks (3064-AE20)

The Federal Deposit Insurance Corporation (FDIC) will be rescinding and removing parts of our regulations, entitled Management Official Interlocks relating to State savings associations. This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The requirements for State savings associations in the transferred OTS regulations are substantively similar to those in the FDIC's regulations, which is also entitled Management Official Interlocks and is applicable for all insured depository institutions (IDIs) for which the FDIC has been designated the appropriate federal banking agency. Upon removal of the transferred OTS regulations applicable for all IDIs for which the FDIC has been designated the appropriate Federal banking agency will be found in our regulations.

Margin and Capital Requirements for Covered Swap Entities (3064-AE21)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, and the Fair Housing Finance Agency (each an Agency and collectively the Agencies) are seeking comment on a proposed joint rule to establish minimum margin and capital requirements for registered swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants for which one of the Agencies is the prudential regulator. This proposed rule implements sections 731 and 764 of the Dodd-Frank Wall Street Reform and Consumer Protection Act which require the Agencies to adopt rules jointly to establish capital requirements and initial and variation margin requirements for such entities and their counterparties on all non-cleared swaps and non-cleared security-based swaps in order to offset the greater risk to such entities and the financial system arising from the use of swaps and security-based swaps that are not cleared.

Filing Requirements and Processing Procedures for Changes in Control With Respect to State Nonmember Banks and State Savings Associations (3064-AE24)

The FDIC is proposing to amend its filing requirements and processing procedures for notices filed under the Change in Bank Control Act (Notices). The amendments are intended to accomplish several objectives. First, the rule would consolidate into one subpart the current requirements and procedures for Notices filed with respect to State nonmember banks and certain parent companies thereof, and the requirements and procedures for Notices filed with respect to State savings associations and certain parent companies thereof. Second, the rule would rescind the FDIC's separate regulation governing the requirements and procedures for Notices filed with respect to State savings associations and certain parent companies thereof and would rescind any guidance issued by the Office of Thrift Supervision relating to changes in control of State savings associations that is inconsistent with the proposed rule. Third, the rule would adopt the best practices of the related regulations of the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. Finally, the rule would clarify the FDIC's requirements and procedures based on its experience interpreting and implementing the existing regulation. This rule is also part of the FDIC's continuing review of its regulations under the Economic Growth and Regulatory Paperwork Reduction Act of 1996.

Record Retention Requirements (3064-AE25)

The Federal Deposit Insurance Corporation proposed a rule that would implement section 210(a)(16)(D) (12 U.S.C. 5390(a)(16)(D)) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). This statutory provision requires the promulgation of a regulation establishing schedules for the retention by the FDIC of the records of a covered financial company, i.e. a financial company for which the FDIC has been appointed receiver pursuant to title II of the Dodd-Frank Act, as well as the records generated and maintained by the FDIC in the exercise of its title II orderly liquidation authority with respect to such covered financial company.

Restrictions on Sale of Assets by the Federal Deposit Insurance Corporation (3064-AE26)

The Federal Deposit Insurance Corporation (FDIC) is amending its regulations. Part 340 implements section 11(p) of the Federal Deposit Insurance Act. Under section 11(p), individuals or entities whose acts or omissions have, or may have, contributed to the failure of an insured depository institution cannot buy the assets of that failed insured depository institution from the FDIC. The proposed revisions to part 340 will help to clarify its purpose, scope and applicability, and will make it more consistent in our regulations, the parallel provision in the FDIC's Orderly Liquidation Authority regulations that implements section 210(r) of the Dodd-Frank Wall Street Reform and Consumer Protection Act by placing restrictions on sales of assets of a covered financial company by the FDIC. Sections of part 340 became effective on July 1, 2014.

*Loans in Areas Having Special Flood Hazards (3064-AE27)

The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, the Farm Credit Administration, and the National Credit Union Administration (collectively, the Agencies) are amending their regulations regarding loans in areas having special flood hazards to implement certain provisions of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA), which amends some of the changes to the Flood Disaster Protection Act of 1973 mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters). Specifically, the proposal would establish requirements with respect to the escrow of flood insurance payments, consistent with the changes set forth in HFIAA. The proposal also would incorporate an exemption in HFIAA for certain detached structures from the mandatory flood insurance purchase requirement. The Agencies plan to address in a separate rulemaking other provisions of Biggert-Waters over which the Agencies have jurisdiction that have not been affected by HFIAA.

*Transferred OTS Regulations Regarding Safety and Soundness Guidelines and Compliance Procedures and Amendments (3064-AE28)

The FDIC will be rescinding and removing from the Code of Federal Regulations 12 CFR part 391, subpart B, entitled Safety and Soundness Guidelines and Compliance Procedures and Appendix A and B to part 391, subpart B and supplement A to appendix B. With few exceptions, the requirements for State savings associations in part 391, subpart B, are substantively similar to those in the FDIC's 12 CFR part 308, subpart R, and in the FDIC's 12 CFR part 364. Upon the completion of these changes, the Standards for Safety and Soundness for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at part 364 and the Submission and Review of Safety and Soundness Compliance Plans and Issuance of Orders to Correct Safety and Soundness Deficiencies for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at part 308, subpart R.

*Transfer and Removal of OTS and CFPB Regulations Regarding Fair Credit Reporting and Amendments and Amendment to the Creditor Definition in Identity Theft Red Flags Rule (3064-AE29)

In this rulemaking, the FDIC proposed to make several amendments to its regulations covering Fair Credit Reporting. First, the FDIC proposed to rescind and remove from the Code of Federal Regulations 12 CFR part 391, subpart C, entitled Fair Credit Reporting. This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The requirements for State savings associations in part 391, subpart C are substantively similar to those in the FDIC's 12 CFR part 334, also entitled Fair Credit Reporting, and is applicable for all insured depository institutions (IDIs) for which the FDIC has been designated the appropriate Federal banking agency.

The FDIC also proposed to modify the scope of 12 CFRs 334.1(b), 334.90(a), and 334.91(a) to include State savings associations and their subsidiaries to conform to the scope of the FDIC's current supervisory responsibilities as the appropriate federal banking agency. The FDIC also proposed to add new subsections to define State savings association as having the same meaning as in section 3(b)(3) of the Federal Deposit Insurance Act.

Second, the FDIC proposed to amend the definitional portion of its Identity Theft Red Flags regulations to be in conformance with the Red Flag Program Clarification Act of 2010.

Third, the FDIC proposed to rescind and remove from the Code of Federal Regulations those portions of the FDIC's Fair Credit Reporting regulations where the rule writing authority was provided to the Consumer Financial Protection Bureau in the Dodd-Frank Act. The FDIC will continue to examine for and enforce violations of these regulations for all IDIs for which the FDIC has been designated the appropriate Federal banking agency. Consistent with this part of the proposal, the FDIC also proposed to make a technical change in one provision in its version of the Interagency Guidelines on Identity Theft Detection, Prevention, and Mitigation.

*Regulatory Capital Rules, Liquidity Coverage Ratio: Proposed Revisions to the Definition of Qualifying Master Netting Agreement and Related Definitions (3064-AE30)

The FDIC invited comment on a notice of proposed rulemaking that would amend the definition of qualifying master netting agreement under the regulatory capital rules, and the liquidity coverage ratio rule. The FDIC also proposed to amend the definitions of collateral agreement, eligible margin loan, and repo-style transaction under the regulatory capital rules. The amendments are designed to ensure that the regulatory capital and liquidity treatment of certain financial contracts generally would not be affected by implementation of special resolution regimes in foreign jurisdictions if such regimes are substantially similar to Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act in the United States, or by the International Swaps and Derivative Association Resolution Stay Protocol that provide for contractual submission to such regimes. In December 2014, the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System adopted a joint interim final rule that is related to this rule.

*Regulatory Capital Rules: Regulatory Capital, Proposed Revisions Applicable to Banking Organizations Subject to the Advanced Approaches Risk-Based Capital Rule (3064-AE31)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the Agencies) sought comment on a proposed rule that would clarify, correct, and update aspects of the Agencies' regulatory capital rule applicable to banking organizations that are subject to the advanced approaches risk-based capital rule (advanced approaches banking organizations). The revisions are largely driven by observations made by the Agencies during the parallel-run review process of advanced approaches banking organizations. They are also intended to enhance consistency of the U.S. regulations with international standards for use of the advanced approaches rule.

*Treatment of Financial Assets Transferred in Connection With a Securitization or Participation (3064-AE32)

The FDIC proposed a rulemaking that would revise certain provisions of its securitization safe harbor rule, which relates to the treatment of financial assets transferred in connection with a securitization or participation, in order to clarify the requirements of the Securitization Safe Harbor as to the retention of an economic interest in the credit risk of securitized financial assets upon and following the effective date of the credit risk retention regulations adopted under section 15G of the Securities Exchange Act.

Long-Term Actions:

Removal of Transferred OTS Regulations Regarding Prompt Corrective Action and Modifications to Existing Federal Deposit Insurance Regulations (3064-AE02)

The Federal Deposit Insurance Corporation (FDIC) will be proposing to rescind and remove from the Code of Federal Regulations 12 CFR part 390, subpart Y, entitled Prompt Corrective Action (PCA). This subpart was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision on July 21, 2011, in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Upon removal of 12 CFR part 390, subpart Y, the PCA regulations applicable for all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency will be found at 12 CFR part 325, subpart B, entitled Prompt Corrective Action; 12 CFR

325.2, entitled Definitions; and 12 CFR part 308, subpart Q, entitled Issuance and Review of Orders Pursuant to the Prompt Corrective Action Provisions of the Federal Deposit Insurance Act Rules (FDIC PCA Rules). The proposed rule also amends the FDIC PCA rules to ensure applicability to all insured depository institutions for which the FDIC has been designated the appropriate Federal banking agency.

Treatment of Certain Collateralized Debt Obligations Backed Primarily by Trust Preferred Securities; Prohibitions and Restrictions on Certain Interests in, Hedge Funds and Private Equity Funds (3064-AE11)

The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the U.S. Commodity Futures Trading Commission, and the Securities Exchange Commission (individually, an Agency, and collectively, the Agencies) will be adopting an interim final rule that would permit banking entities to retain investments in certain pooled investment vehicles that invested their offering proceeds primarily in trust preferred or subordinated debt securities issued by community banking organizations of the type grandfathered under section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection

Act. The interim final rule is a companion rule to the final rules adopted by the Agencies to implement section 13 of the Bank Holding Company Act of 1956, which was added by section 619 of the Dodd-Frank Act.

Completed Actions:

Credit Risk Retention (3064-AD74)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities Exchange Commission, the Federal Housing Finance Agency and the U.S. Department of Housing and Urban Development (the Agencies) are adopting a joint final rule to implement the credit risk retention requirements of section 15G of the Securities Exchange Act of 1934, as added by section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 15G generally requires the securitizer of asset-backed securities to retain not less than 5 percent of the credit risk of the assets collateralizing the asset-backed securities. Section 15G includes a variety of exemptions from these requirements, including an exemption for asset-backed securities that are collateralized exclusively by residential mortgages that qualify as qualified residential mortgages, as such term is defined by the Agencies by rule.

Loans in Areas Having Special Flood Hazards (3064-AE03)

The Federal Deposit Insurance Corporation (FDIC) is adopting a final rule to rescind and remove regulations entitled Loans in Areas Having Flood Hazards and to amend regulations entitled Loans in Areas Having Flood Hazards. The final rule will integrate the flood insurance regulations for State nonmember banks and State savings associations in accordance with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The integration of the regulations was originally proposed as part of an interagency joint notice of proposed rulemaking issued in October 2013, pursuant to the Biggert-Waters Flood Insurance Reform Act of 2012. The FDIC has decided to integrate the flood insurance regulations by means of an individual final rule.

Removal of Transferred OTS Regulations Regarding Rules of Practice and Procedure and Amendments to FDIC Rules and Regulations (3064-AE08)

The Federal Deposit Insurance Corporation is adopting a final rule to rescind and remove from the Code of Federal Regulations rules transferred to the FDIC following the dissolution of the former Office of Thrift Supervision in connection with the implementation of applicable provisions of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule also makes conforming amendments to FDIC regulations.

Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio (3064-AE12)

In May 2014, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the Agencies) issued a notice of proposed rulemaking (NPR or proposed rule) to revise the definition of the denominator of the supplementary leverage ratio (total leverage exposure) that the Agencies adopted in July 2013, as part of comprehensive revisions to the Agencies' regulatory capital rules (2013 revised capital rule). The Agencies are adopting the proposed rule as final (final rule) with certain revisions and clarifications based on comments received on the proposed rule.

The final rule revises total leverage exposure as defined in the 2013 revised capital rule to include the effective notional principal amount of credit derivatives and other similar instruments through which a banking organization provides credit protection (sold credit protection); modifies the calculation of total leverage exposure for derivative and repo-style transactions; and revises the credit conversion factors applied to certain off-balance sheet exposures. The final rule also changes the frequency with which certain components of the supplementary leverage ratio are calculated and establishes the public disclosure requirements of certain items associated with the supplementary leverage ratio.

The final rule applies to all banks, savings associations, bank holding companies, and savings and loan holding companies (banking organizations) that are subject to the Agencies' advanced approaches risk based capital rules, as defined in the 2013 revised capital rule (advanced approaches banking organizations), including advanced approaches banking organizations that are subject to the enhanced supplementary leverage ratio standards that the agencies finalized in May 2014, (eSLR standards). Consistent with the 2013 revised capital rule, advanced approaches banking organizations will be required to disclose their supplementary leverage ratios beginning January 1, 2015, and will be required to comply with a minimum supplementary leverage ratio capital requirement of 3 percent and, as applicable, the eSLR standards beginning January 1, 2018.

Assessments (3064-AE16)

The FDIC is amending its regulations to revise the ratios and ratio thresholds for capital evaluations used in its risk-based deposit insurance assessment system to conform to the prompt corrective action capital ratios and ratio thresholds adopted by the FDIC, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (collectively, the Federal banking agencies); revise the assessment base calculation for custodial banks to conform to the asset risk weights adopted by the Federal banking agencies; and require all highly complex institutions to measure counterparty exposure for deposit insurance assessment purposes using the Basel III standardized approach credit equivalent amount for derivatives (with modifications for certain cash collateral) and the Basel III standardized approach exposure amount for securities financing transactions such as repo style transactions, margin loans and similar transactions as adopted by the Federal banking agencies.

Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations (3064-AE17)

The FDIC is rescinding and removing the former OTS regulation entitled Possession by Conservators and Receivers for Federal and State Savings Associations from the Code of Federal Regulations because it is not necessary. This rule was included in the regulations that were transferred to the FDIC from the OTS on July 21, 2011, in connection with the Implementation of title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Annual Stress Test (3064-AE18)

The Federal Deposit Insurance Corporation (the Corporation or FDIC) is issuing a final rule that implements proposed revisions to regulations regarding the annual stress testing requirements for State nonmember banks and State savings associations with total consolidated assets of more than $10 billion (covered banks). The regulations, which implement section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), require covered banks to conduct annual stress tests, report the results of such stress tests to the Corporation and the Board of Governors of the Federal Reserve System, and publicly disclose a summary of the results of the required stress tests. The final rule revises the 2016 stress test cycle and for years thereafter to begin on January 1 of the calendar year rather than October 1, as is provided for by the current rule. Additionally, the final rule modifies the as of dates for financial data (that covered banks will use to perform their stress tests) as well as the reporting dates and public disclosure dates of the annual stress tests for both $10 billion to $50 billion covered banks and over $50 billion covered banks.

Federal Deposit Insurance Corporation.

NAME: Valerie J. Best,

Assistant Executive Secretary.